Method of exchanging goods by an auction

ABSTRACT

A computerized system and method for auctioning products or services is provided which maintains a set of members, the members including a plurality of buyers of products and/or services and a plurality of sellers of products and/or services. The system supports buyer auctions (in which a buyer solicits bids from a plurality of sellers) and seller auctions (in which sellers solicit bids from a plurality of buyers). The system initiates an auction in response to a request from one of the plurality of members. The request includes product/service specifications for a product/service which the initiator wishes to sell (or in the case of a buyer auction, which the buyer wishes to purchase), a set of alternative payment specifications acceptable to the initiator, a set of alternative shipment term specifications acceptable to the initiator, and an auction specification. The product specifications may, for example, include one or more of a product name, a product grade, packing specifications, product specifications, product quality, product quantity, origin of goods, and destination of goods. The set of payment specifications may, for example, include one or more of a preferred payment term, a set of preferred banks, a preferred set of banks for negotiation, an earliest date to open, a latest date to open, and an auction currency. The set of alternative shipment specifications in turn, may include one or more of an earliest shipment date, a latest shipment date, a preferred shipment term. The auction specifications may, for example, include an identification of sellers (or buyers) authorized to bid.

FIELD OF THE INVENTION

[0001] The present invention relates to a method of buying and sellinggoods. Specifically, the present invention relates to buying and sellinggoods in an auction transaction.

BACKGROUND OF THE INVENTION

[0002] The Internet, a network connecting many computer networks andbased on a common addressing system and communications protocol calledTCP/IP (Transmission Control Protocol/Internet Protocol), hasrevolutionized the computer and communications world like nothingbefore. From its creation in 1983 it grew rapidly beyond its largelyacademic origin into an increasingly commercial and popular medium.

[0003] By the mid-1990s the Internet connected millions of computersthroughout the world. Many commercial computer network and data servicesalso provided at least indirect connection to the Internet.

[0004] The original uses of the Internet were electronic mail (commonlycalled “E-mail”), file transfer (using ftp, or file transfer protocol),bulletin boards and newsgroups, and remote computer access (telnet). TheWorld Wide Web, which enables simple and intuitive navigation ofInternet sites through a graphical interface, expanded dramaticallyduring the 1990s to become the most important component of the Internet.

[0005] The Internet had its origin in a U.S. Department of Defenseprogram called ARPANET Advanced Research Projects Agency Network),established in 1969 to provide a secure and survivable communicationsnetwork for organizations engaged in defense-related research.Researchers and academics in other fields began to make use of thenetwork, and at length the National Science Foundation (NSF), which hadcreated a similar and parallel network called NSFNet, took over much ofthe TCP/IP technology from ARPANET and established a distributed networkof networks capable of handling far greater traffic. NSF continues tomaintain the backbone of the network (which carries data at a rate of 45million bits per second), but Internet protocol development is governedby the Internet Architecture Board, and the InterNIC (Internet NetworkInformation Center) administers the naming of computers and networks.

[0006] Amateur radio, cable television wires, spread spectrum radio,satellite, and fibre optics all have been used to deliver Internetservices. Networked games, networked monetary transactions, and virtualmuseums are among applications being developed that both extend thenetwork's utility and test the limits of its technology.

[0007] In recent years, it has also become increasingly common to haveauctions over the Internet, with the buyer using credit cards or otherforms of credit to purchase the goods auctioned.

SUMMARY OF THE INVENTION

[0008] In accordance with a first embodiment of the present invention, acomputerized system and method for auctioning products or services isprovided which maintains a set of members, the members including aplurality of buyers of products and/or services and a plurality ofsellers of products and/or services. The system supports buyer auctions(in which a buyer solicits bids from a plurality of sellers) and sellerauctions (in which sellers solicit bids from a plurality of buyers).

[0009] The system initiates a seller auction in response to a requestfrom one of the plurality of sellers. The request includesproduct/service specifications for a product/service which the sellerwishes to sell, a set of alternative payment specifications acceptableto the seller, a set of alternative shipment term specificationsacceptable to the seller, and an auction specification. The productspecifications may, for example, include one or more of a product name,a product grade, packing specifications, product specifications, productquality, product quantity, origin of goods, and destination of goods.The set of payment specifications may, for example, include one or moreof a preferred payment term, a set of preferred banks, a preferred setof banks for negotiation, an earliest date to open, a latest date toopen, and an auction currency. The set of alternative shipmentspecifications in turn, may include one or more of an earliest shipmentdate, a latest shipment date, a preferred shipment term. The auctionspecifications may, for example, include an identification of sellersauthorized to bid.

[0010] In response to the initiation of the seller auction, the systemreceives one or more bids from a corresponding one or more of theplurality of buyers. Each bid identifies one of the set of alternativepayment specifications acceptable to the seller, one of the set ofalternative shipment specifications acceptable to the seller, and adesired price for the product/service identified by the product/servicespecifications. In this regard, it should noted although the term“alternative” specifications is used herein, such “alternative”specifications include the specification of only a single alternative(e.g., payment must be in U.S. dollars), or a range (e.g., delivery mustbe between January 1 and February 1). The bid identifies one of the setof alternative specifications by submitting information which conformsto the specification (e.g., payment in U.S. dollars, or delivery onJanuary 15).

[0011] In any event, for each of the one or more bids, the systemverifies that the bid is from an authorized one of the plurality ofbuyers based upon the auction specification. The system then receives,from the seller, either an acceptance of one of the authorized bids or arejection of all authorized bids.

[0012] The system initiates a buyer auction in response to a requestfrom one of the plurality of buyers. This request similarly includesproduct/service specifications for a product/service which the buyerwishes to purchase, a set of alternative payment specificationsacceptable to the buyer, a set of alternative shipment termspecifications acceptable to the buyer, and an auction specification. Inresponse to the initiation of the buyer auction, the system receives oneor more bids from a corresponding one or more of the plurality ofsellers, each bid identifying one of the set of alternative paymentspecifications acceptable to the buyer, one of the set of alternativeshipment specifications acceptable to the buyer, and a desired price forthe product/service identified by the product/service specifications.Then, for each of the one or more bids, the system verifies that the bidis from an authorized one of the plurality of sellers based upon theauction specification. The system then receives, from the buyer, eitheran acceptance of one of the authorized bids or a rejection of allauthorized bids.

[0013] In accordance with a second embodiment of the present invention,a computerized system and method for auctioning products or services isprovided comprising the steps of initiating an auction in response to arequest from an auctioneer and receiving one or more bides fromcorresponding one or more bidders. The request may, for example, includeproduct/service specifications for a product/service which theauctioneer wishes to sell or buy, a set of alternative paymentspecifications acceptable to the auctioneer, a set of alternativeshipment term specifications acceptable to the auctioneer. The bids, inturn, may identify one of the set of alternative payment specificationsacceptable to the auctioneer, one of the set of alternative shipmentspecifications acceptable to the auctioneer, and a desired price for theproduct/service identified by the product/service specifications. Thesesets of alternative specifications can be provided in the same manner asdescribed above with respect to the first embodiment.

[0014] In any event, a plurality of the bidders is then selected to forma final bidders set. The final bidders set may be selected by theauctioneer, or may be automatically selected by the system. The systemcould, for example, select the three highest bidders as the final bidderset. Each one of bidders of the final bidders is then, in turn,designated as the select bidder until either i) an agreement is reachedbetween a select bidder and the auctioneer, or ii) all of the bids havebeen rejected from all of the final bidders. In this regard, time limitscould be set which limit the time in which the auctioneer can negotiatewith each final bidder, or which set an expiration time on a bidder'sbid. The select bidder can send one or more bidder bids to theauctioneer, and the auctioneer can send one or more auctioneer bids tothe select bidder. If an agreement is reached on a current bid betweenthe select bidder and the auctioneer, the auction terminates. If,however, the negotiation between the select bidder and the auctioneerterminates without agreement (e.g., the time limit for negotiationexpired, or one party breaks off negotiations), then the next bidder inthe set of final bidders becomes the select bidder, and the process isrepeated.

[0015] In accordance with further aspects of the above embodiments, thesystem provides a qualification (or performance) rating for each buyer,seller, auctioneer, or bidder which is based upon information providedby other buyers or sellers. In this regard, a seller's qualificationrating is preferably based upon rating information provided by buyers,and a buyer's qualification rating is preferably based upon ratinginformation provided by sellers.

[0016] In accordance with other aspects of the above embodiments, thesystem includes two types of buyer entities (BUYER an TRADER) and twotypes of seller entities (SUPPLIER and DISTRIBUTOR). The BUYER isdefined as a member who purchases goods through the system for their ownconsumption and not for resale. The SUPPLIER is a member who producesgoods traded on the system or an affiliated office associated with theproducer member. Also included in the definition of the SUPPLIER is anyindividual or company that has authority to act as an exclusive agentfor the producer member or affiliated office. The TRADER is a buyer whore-sells goods produced or sold by the suppliers on an ex-proforma basiswithout acting as an exclusive agent. The DISTRIBUTER is any member whore-sells goods produced/sold by the suppliers on an ex-inventory basis.In accordance with this feature, BUYERS and DISTRIBUTORS can initiatebuyer auctions, SUPPLIERS can initiate seller auctions, DISTRIBUTORS,SUPPLIERS, and TRADERS can participate in buyer auctions, andDISTRIBUTORS, TRADERS, and BUYERS can participate in seller auctions.

[0017] In accordance with further aspects of the above embodiments ofthe present invention, the alternative payment specifications mayinclude two or more of a payment by letter of credit term, cash againstdocuments term, cash against goods term, open account term, wiretransfer term, check term, a cash term, and an auction currency term;the product/service specifications may include two or more of apacked/bagged term, packed/drummed term, bulk term, palletized term,non-palletized term, and user defined packing term; and theproduct/service specifications may include two or more of an open to allcountries term, all countries except a selected one term, and only theselected countries term.

[0018] In accordance with still other aspects of the above embodiments,the alternative shipment specifications may include one or more of anearliest shipment date term, a latest shipment date term, and apreferred shipment term; and may further include one or more alternativeshipment terms and a cost difference between each of the alternativeshipment terms and the preferred shipment term. Moreover, the systemcould further perform the step of ranking the bids based on the costdifference.

[0019] In accordance with accordance with other aspects of the aboveembodiments, the alternate shipment specifications may include either ano survayence report is required term or a specific survey reportdetails term. Moreover, the specific survey report details term mayinclude one or more of a packing list survey term, quality certificateterm, inspection reports term, survey report specifications term, surveyreports topic term, survey locations term, and survey expenses term.

[0020] In accordance with a third embodiment of the present invention, acomputerized method for providing information to initiators andparticipants in computerized auctions of products or services isprovided which comprising the steps of: maintaining a set of members,the members including buyer members and seller members, the buyermembers having the ability to initiate buyer auctions and to participatein seller auctions, the seller members having the ability to initiateseller auctions and to participate in buyer auctions, accepting, from abuyer member, a performance (or qualification) rating for any one of theseller members, accepting, from a seller member, a performance ratingfor any one of the buyer members, and providing the performance ratingsto the set of members.

BRIEF DESCRIPTION OF THE DRAWINGS

[0021] FIGS. 1(a) through 1(c) are a flow chart for an AWMF system inaccordance with an illustrative embodiment of the present invention.

[0022]FIG. 2 is an illustrative Product Specifications interface for theAWMF system.

[0023]FIG. 3 is an illustrative Payment Specifications interface for theAWMF system.

[0024]FIG. 4 is an illustrative Shipment Terms interface for the AWMFsystem.

[0025]FIG. 5 is an illustrative Auction Specifications interface for theAWMF system.

[0026] FIGS. 6(a) through 6(c) are a flow chart for a bid plusnegotiation system in accordance with an illustrative embodiment of thepresent invention.

[0027]FIG. 7 is an illustrative Product Specifications interface for theBPN system

[0028]FIG. 8 is an illustrative Payment Specifications interface for theBPN system

[0029]FIG. 9 is an illustrative Shipment Terms interface for the BPNsystem

[0030]FIG. 10 is an illustrative Auction Specifications interface forthe BPN system

[0031]FIG. 11 shows a flow chart for a rating scheme in accordance withan illustrative embodiment of the present invention.

[0032]FIG. 12 shows an illustrative rating information interface.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0033] In accordance with a preferred embodiment of the presentinvention, an electronic auctioning system for members is provided whichuses an auction with multiple features model (shown in FIGS. 1-5) and aBids Plus Negotiation model (shown in FIGS. 6-10) in order to conductauctions. The system also allows users to rate other users as shown inFIGS. 11-12.

[0034] The system uses a Buyer, Trader, Distributer, and Supplier tomodel participants in exchanges. The buyer is defined as any member whopurchases goods through the system for their own consumption and not forresale. The supplier is any member who produces goods traded on thesystem or an affiliated office associated with the producer member.Also, included in the definition of the supplier is any individual orcompany that has authority to act as an exclusive agent for the producermember or affiliated office. The Trader is any member who re-sells goodsproduced or sold by the suppliers on an ex-proforma basis without actingas an exclusive agent (e.g., the supplier issues a proforma invoice tothe buyer and buyer opens a letter of credit (L/C) directly to thesupplier and the trader is paid a commission. The intermediary betweenthe buyer and seller does not open the L/C.) The distributer is anymember who re-sells goods produced/sold by the suppliers on anex-inventory basis (e.g., sales from inventory) without acting as anexclusive agent (e.g., a seller who maintains a local inventory).

[0035]FIG. 1 illustrates the flow of the Auction with multiple features(AWMF) auctioning method. An AWMF is a transaction created by any memberin order to buy or sell products. Preferably, any member can designand/or participate in an AWMF auction. On receiving a create AWMF event25, which can be initiated by a member acting as the buyer, distributer,or supplier, a determination is made as to whether the AWMF is a buyerAWMF or a seller AWMF 50. For example, if the auctioneer is the buyer ordistributer, then the AWMF is a buyer AWMF. However, if the auctioneeris the supplier, then the AWMF is a seller AWMF. In the seller AWMF, theseller of a product offers the product to the buyers. However, in thebuyer AWMF, the buyer offers to buy a product pursuant to a set ofcriteria. The buyer's offer is then bid on by sellers.

[0036] The system then prompts the auctioneer (i.e., the initiator ofthe AWMF event) for product specification fields (step 100), as shown inFIG. 2. If the system does not receive all the required productspecification fields in a specified amount of time, an error isgenerated (step 120). Otherwise, the system prompts the auctioneer forpayment specification fields (step130), as shown in FIG. 3. If thesystem does not receive all the required payment specification fields ina specified amount of time, an error is generated (step 120). The systemthen prompts the auctioneer for shipment terms (step 150), as shown inFIG. 4. If the system does not receive all the required shipment termsin a specified amount of time, an error is generated (step 120).Assuming no error is generated, the system prompts the auctioneer forAWMF auction specifications (step 170), as shown in FIG. 5, and if thesystem does not receive all the required shipment terms in a specifiedamount of time, an error is generated (step 120).

[0037] Once all the required fields have been correctly entered, thesystem provides the Auctioneer with a summary page of the informationsubmitted (step 190). The Auctioneer may then review and edit theinformation that was submitted (step 200), cancel the auction (step210), or approve the auction (step 220). If the auctioneer reviews andedits the information submitted (step 190), the system then provides theauctioneer with an updated summary page that takes into account theedited information (step 190). If the auctioneer has eitherAdministrator user status or knows an authorization code, he or sheapproves the auction (Step 200). If the auctioneer does not haveAdministrator user status and does not know the authorization code, thenthe member may send the AWMF auction to the Administrator user, who canthen approve the auction (step221). For example, the member may send theAWMF auction specification to the administrator user by pressing the“send for approval” button. Once the AWMF auction is approved (Step 200,and if necessary Step 221), it is recorded in a database (step 230), andis then activated at the time set by the auctioneer (step 240).

[0038] After the AWMF auction is activated (step 240), each bidder canplace a bid in the AWMF auction by pressing a “place a bid” button (step250) that is displayed to the bidder. The “place a bid” button can be onan auction details web page shown to the buyer. In the case of theseller AWMF auction, the bidder is the buyer of a product. However, inthe buyer AWMF auction, the bidder is the seller of a product. In thebuyer AWMF the trader, distributer, and supplier may participate as thebidder. In the seller AWMF, the buyer, trader, and distributer canparticipate as the bidder.

[0039] If the AWMF is a seller auction, then when placing a bid thebidder selects one of the shipment terms specified by the Auctioneer,one of the payment terms specified by the Auctioneer, and a desiredprice for the products offered per unit. The desired price may also beas specified without any constraints imposed by the Auctioneer.

[0040] If the AWMF is a buyer auction and the bidder is placing a bidfor one product with one origin, the bidder selects the name of thecounty in which the goods are produced, one of the shipment termsspecified by the Auctioneer, one of the payment terms specified by theAuctioneer, and a desired price for the products offered per unit. Thedesired price can be the price as specified by the Auctioneer.Additionally, the bidder may select the name of the manufacturer that isoffering the products, and/or the official product code of the productsoffered.

[0041] If the AWMF auction is a buyer auction and the bidder is placingthe same bid for different products with different specifications, thebidder selects the name of the county in which the goods are produced,one of the shipment terms specified by the Auctioneer, one of thepayment terms specified by the Auctioneer, and a desired price for theproducts offered per unit. The desired price can be the price asspecified by the Auctioneer. Additionally, the bidder may select thename of the manufacturer that is offering the products, and/or theofficial product code of the products offered. Furthermore, the biddermay select countries of origin for each product offered and/or producersfor each product offered. The bidder selects the same shipment terms,payment terms, and desired price for all the products offered. In thisway, the bidder may place the same bid for different products withdifferent specifications.

[0042] If the AWMF auction is a buyer auction and the bidder is placinga different bid for different products with different specifications,the bidder selects the name of the county in which the goods areproduced, one of the shipment terms specified by the Auctioneer, one ofthe payment terms specified by the Auctioneer, and a desired price forthe products offered per unit. The desired price can be the price asspecified by the Auctioneer. Additionally, the bidder may select thename of the manufacturer that is offering the products, and/or theofficial product code of the products offered. Furthermore, the biddermay, for each product offered, select countries of origin, producers,shipment terms, payment terms, desired prices, and product codes. Inthis way, the bidder may place different bids for different productswith different specifications.

[0043] The Bidder is then provided with a summary page (step 260) of theinformation contained in the bid. The Bidder may review and edit theinformation submitted in previous steps 270, cancel the bid (step 280),or approve the bid (step 290). If the bidder reviews and edits theinformation submitted, the system then provides the bidder with anupdated summary page that takes into account the edited information(step 260).

[0044] In order for the bid to be accepted, the system verifies the bid(step 300) by checking the following conditions:

[0045] (i) the bidders are authorized to participate in an AWMF sellerauction (e.g., they are either a trader, distributor or a buyer);

[0046] (ii) the bidders are invited to the auction by the Auctioneer orthey have obtained permission from the Auctioneer to place a bid in theauction;

[0047] (iii) the bidder's participation is not restricted by theAuctioneer; and

[0048] (iv) the bidder has either Administrator user status, knows thecorrect authorization code, or has the Administrator's approval for theauction.

[0049] If any of the above conditions are false, the error is generated(step 120). Once the bid is approved, it is recorded in the database(step 310). Then, once the auction has ended, the bid that theauctioneer selects is confirmed (step 320).

[0050] Minimum and maximum auction quotas may be provided by the system.For example, all buyer and distributor members could be required tocreate at least one buyer AWMF auction every month. Moreover, buyer anddistributor members could be barred from creating a second AWMF auctionin a given month if they have created and not concluded a first AWMFauction in the same month. Procedures, could, however, be provided toallow a members to create a second AWMF auction if they can state asatisfactory reason for not concluding the first auction. For example,technical difficulties, insufficient number of bids, or unreasonablebids might be considered satisfactory reasons.

[0051]FIG. 2 illustrates a Product Specifications interface 1998. Theinterface includes a Product Name field 2000 which includes the name ofthe product to be bought or sold in the auction. Also show is a ProductGrade field 2010 which refers to the grade of the product to be boughtor sold in the auction. The interface also has a Product Quality field2020 which defines the quality of the product to be bought or sold inthe auction. The member can select from three categories of quality:prime, near prime, and offspec. Also included in the interface is aProduct Specifications field 2030, which identifies the productspecifications. These specifications may include the product code of amanufacturer or other specifications such as Melt Flow Index or K Value.The member may optionally attach a document to further clarify theproduct specifications.

[0052] A Packing Specifications field 2040 refers to the packingspecifications of the product to be sold. In this example, there arethree packing options the member can choose from: (i) Packed/Bagged,(ii) Packed/Drummed, or (iii) Bulk. It is also possible to make a choicebetween palletized and non-palletized. The unit used (kg, liter) isgenerally net. Additional packing requirements can be stated in a freefield provided.

[0053] A Quantity field 2050 specifies the amount to be sold in theauction. The member may specify the unit of measure, which can includethe following; mt, kg, lb, gal, ltr, mg, bbl, cyl, m3, cef, st, mmbtu,dst, ea, bou. The quantity for sale field 2050 is required. If theauction is a buyer AWMF auction, the quantity field 2050 specifies thequantity requested. However, if the auction is a seller AWMF auction,the quantity field 2050 specifies the amount of goods for sale.

[0054] An Origin of the goods field 2060 contains the name of thecountry in which the goods are produced. In an AWMF buyer auction, threeoptions for this field are available to the auctioneer:

[0055] (i) open to all countries;

[0056] (ii) all countries except the selected ones—in the event thatcertain countries are not desired as the destination, those countriescan be excluded with the help of the arrows from the box where the namesof all countries appear; and

[0057] (iii) only the selected countries—if trade with certain countriesis specifically preferred over the others, then those countries can beincluded with the help of the arrows from the box where the names of allcountries appear.

[0058] The interface includes a Destination of the goods field 2070,which is required. The destination of the goods field contains theplanned country of sale of the goods. In a seller AWMF auction, threeoptions for this field are available to the auctioneer:

[0059] (i) open to all countries;

[0060] (ii) all countries except the selected ones—in the event thatcertain countries are not desired as the destination, those countriescan be excluded with the help of the arrows from the box where the namesof all countries appear; and

[0061] (iii) only the selected countries—if trade with certain countriesis specifically preferred over the others, then those countries can beincluded with the help of the arrows from the box where the names of allcountries appear.

[0062]FIG. 3 illustrates a Payment Specifications interface 3000. APreferred Payment Term 3010 includes the preferred way of payment oncethe transaction is concluded. The following options are available;Payment by letter of credit (“L/C”), which may include from sight to 360days; cash against documents; cash against goods; open account; wiretransfer; check; and cash. The preferred payment term 3010 is required.

[0063] The Auctioneer may specify up to two additional payment terms3011 in addition to the preferred payment term. Bids for differentpayment terms can then be separately listed for each term.

[0064] A Preferred Banks field 3020, which is a required field if L/C isspecified in the preferred payment terms 3010 field, refers to the bankswith which the Auctioneer prefers to open the L/C. Preferred banks areselected from “Banks” section and added to “Selected Banks” with thehelp of the arrows. Preferably, selection of multiple banks is madepossible by using the “CTRL” key. If the preferred bank is not listed inthe box, the Auctioneer may type the name of the bank in a free field.

[0065] A Preferred banks for negotiation and confirmation field 3030,which is not required, allows the auctioneer to type the name of adesired bank(s) for negotiation and confirmation.

[0066] If the auction is a AWMF buyer auction, an earliest date to openL/C field 3035 is present. The field is required if L/C is specified andallows the Auctioneer to enter the earliest date that the L/C can beopened.

[0067] Also shown is a Latest Date to open L/C 3038, which is a requiredfield if L/C is specified in the preferred payment terms field 3010. TheLatest date to open L/C 3038 includes the latest date that the winningbidder can open the L/C.

[0068] Another required filed is the Auction Currency field 3040. AnAuction Currency field 3040 has the currency to be used in the AWMFauction. In the illustrated system, the auctioneer can select from anyof the following; USD, EURO, TL, DM, GBP, FF, or JPY.

[0069]FIG. 4 illustrates a Shipment Terms interface 4000. An EarliestShipment Date field 4010 provides for the earliest date for thereadiness of the cargo (product) at the port, area, city or borderstated under “Port/City” and associated with the preferred shipmentterm. A Latest Shipment Date 4020 provides for the Latest date for thereadiness of the cargo (product) at the port, area, city or borderstated under “Port/City” and associated with the preferred shipmentterm.

[0070] The interface also has a Preferred Shipment Term 4030 whichallows the auctioneer to choose from the following incoterms; EXW, FAS,FOB, CFR, CIF or CPT (terms refer to the definitions as provided by ICCstandards). The auctioneer may also set the preferred port, city andcountry.

[0071] The auctioneer may set additional (up to three) shipment terms4011, which enable parties to trade in a more flexible environment. Theauctioneer states the cost difference between each alternative and thepreferred shipment terms. The cost difference is then used by the systemto automatically rank the bids for different shipment terms.

[0072] If the auction is a AWMF buyer auction, the auctioneer may selectan independent survey report 4035. In the report, the auctioneer maychoose from the following options:

[0073] (i) No surveyance report is required; or

[0074] (ii) Specific survey report details.

[0075] If the specific survey report details is selected, the auctioneercan then request a packing list survey, quality certificate, inspectionreports, survey report specifications, survey report topics, surveylocations, and/or survey expenses.

[0076]FIG. 5 illustrates an interface for AWMF Auction Specifications5000. A Starting Date 5010 refers to the date on which the AWMF auctionwill commence. A Starting Time 5020 contains the time that the AWMFauction will be activated on the given starting date. If the startingtime field 5020 is left blank, a default value (e.g., 8 am) is used.

[0077] Also shown is a Closing Date 5030, which refers to the date onwhich the AWMF auction will be closed to further bidding. A Closing Timefield 5040 refers to the time when the ongoing AWMF auction will expireon the closing date. If the closing time field 5040 is left blank, adefault value (e.g. 6 pm) is used.

[0078] A Bid Type field 5050 provides different options for conductingthe AWMF auction. The auctioneer may select a (i) Single Bid option,where Bidders bid only once and prices are opaque (i.e., each bidder'sprice is hidden from the other bidders). Thus, the winning bid isdeclared after the AWMF auction is finalized. The auctioneer may alsoselect a (ii) Reverse Auction option, whereby bidders can keep biddinguntil the AWMF auction is closed. A buyer AWMF reverse auction withmultiple bids allows for the lowest price from the bidders with the bestterms possible.

[0079] A Minimum partial bid field 5060, which is not required, isavailable for a single bid seller or buyer auctions. The auctioneer canaccept partial bids from the bidders. However, the auctioneer alsodeclares the minimum amount of the bid that will be acceptable. Thus,bids below the minimum amount are not accepted.

[0080] An Evaluation Period field 5070 determines the validity of theoffers after the AWMF auction time is over. In this regard, theauctioneer must finalize the AWMF auction within the time range he/shehas set in the evaluation period field. Preferably, the time range isnot longer than 24 hours.

[0081] An Extension field 5080 allows automatic extension of an AWMFauction once the auction time is over, pursuant to a set of conditions.The conditions can be that (i) less than 3 companies participate in theauction; (ii) at least 50% of the bids are placed in the last 5 minutes;and/or (iii) at least 50% of the price improvements take place in thelast 5 minutes. Preferably the duration of 5 minutes can be extended to30 minutes. By choosing, for example, “This auction will not beextended,” the Auctioneer may choose not to extend the auction.

[0082] A Price field 5090 allows the auctioneer to choose whether theprice offers will be known or anonymous. The auctioneer may choose (i)Prices Known: If prices are known, then every member participating inthis AWMF auction will know the prices offered by every bidder. Theauctioneer may also chose (ii) Prices Anonymous: If prices areanonymous, the Auctioneer can view all of the prices, but the bidderssee just their own prices. In single bid auctions, the default settingof the prices field 5090 is preferably anonymous.

[0083] A Participant's Identity field 5100 allows the auctioneer tochoose whether the identity of the companies participating in an AWMFauction are known or anonymous by choosing one of the following:

[0084] (i) All participants known: The identity of both the Auctioneerand the bidders will be known to all companies participating in thatauction.

[0085] (ii) All participants anonymous: The identity of both theAuctioneer and the bidders will be anonymous to all partiesparticipating in that auction.

[0086] (iii) Parties known, bidders anonymous to peers: The identity ofthe Auctioneer will be known by all the bidders and the Auctioneer willknow all the bidders' identities. However, the bidders will remainanonymous to one another. For example, in a buyer AWMF auction theAuctioneer will know the identity of the sellers and each seller willknow the identity of the Auctioneer, however, the bidders will not knowwhom they are competing against.

[0087] A Sellers Participating in the Auction field 5110 allows theauctioneer to decide who can participate in an auction. The selection ofthe bidders can be done in four ways, as follows. (i) Open to allmembers: The AWMF auction will be open to all ChemOrbis members and canbe viewed by all. (ii) Selected members only, others not allowed: TheAuctioneer can limit the participation to only certain members. In thiscase, the companies to be invited should be selected from the “Members”section and added to “Selected Members” with the help of the arrows.These auctions can only be viewed by those who have the right toparticipate in that auction. (iii) Selected members only, others withpermission: The Auctioneer can limit the participation to only certainmembers, but may also allow others to participate by seeking his/herpermission. In this case, the companies to be invited should be selectedfrom the “Members” section and added to “Selected Members” with the helpof the arrows. It is possible to ask for permission simply by clickingon the button “Ask Permission” available in such cases. (iv) Selectedmembers not allowed: The Auctioneer can exclude certain companies, thusthese companies will not be able to view the AWMF auction in question.

[0088]FIG. 6(a-c) illustrates a flow chart of the Bids plus negotiation(BPN) auctioning method. A BPN is a transaction created by any member inorder to buy or sell products. Preferably, all members can design andparticipate in a BPN auction. On receiving a create BPN event 10025,which can be initiated by a member acting as the buyer, distributer, orsupplier, a determination is made as to whether the BPN is an buyer BPNor a seller BPN 10050. For example, if the auctioneer is the buyer ordistributer, then the BPN is a buyer BPN. However, if the auctioneer isthe supplier, then the BPN is a seller BPN. In the seller BPN, theseller of a product offers the product to the buyers. However, in thebuyer BPN, the buyer offers to buy a product pursuant to a set ofcriteria. The buyers offer is then bid on by sellers.

[0089] The system then prompts the auctioneer (i.e., the initiator) forBPN product specification fields (step 10100), as shown in FIG. 7. Ifthe system does not receive all the required BPN product specificationfields in a specified amount of time, an error is generated (step10120). Otherwise, the system prompts the auctioneer for BPN paymentspecification fields (step 10130), as shown in FIG. 8. If the systemdoes not receive all the required BPN payment specification fields in aspecified amount of time, an error is generated (step 10120). If itdoes, the system prompts the auctioneer for BPN shipment terms (step10150), as shown in FIG. 9. If the system does not receive all therequired BPN shipment terms in a specified amount of time, an error isgenerated (step 10120). Assuming the system does receive the requiredfields, the system prompts the auctioneer for BPN specifications (step10170), as shown in FIG. 5, and if the system does not receive all therequired BPN specifications in a specified amount of time (step 10180),an error is generated (step 10120).

[0090] After receiving all the required fields, the system provides theauctioneer with a BPN summary page of the information submitted (step10190). The Auctioneer may then review and edit the information that wassubmitted (step 10200), cancel the auction (step 10210), or approve theauction (step 10220). If the auctioneer reviews and edits theinformation submitted (step 10200), the system then provides theauctioneer with an updated summary page that takes into account theedited information (step 10190). Preferably, to approve the auction, themember has either Administrator user status or knows an authorizationcode. If the member is not the Administrator user and does not know theauthorization code, then the member may send the BPN auction to theAdministrator user, who can then approve the auction (step 10231). Forexample, the member may send the BPN auction specification to theadministrator user by pressing the “send for approval” button.

[0091] Once the BPN auction is approved, it is recorded in a database(step 10230), and is then activated at the time set by the auctioneer(step 10240).

[0092] After the BPN auction is activated (step 10240), each bidder canplace a bid in the BPN auction by pressing a “place a bid” button (step10250) that is displayed to the bidder. The bidder can place one or morebids up to a maximum limit. Preferably, the maximum limit is set atthree. Subsequent bids by the same bidder, which can be either higher orlower, nullify prior bids of the bidder. The “place a bid” button can beon an auction details web page shown to the buyer. In the case of theBPN seller auction, the bidder is the buyer of a product. However, inthe BPN buyer auction, the bidder is the seller of the product. Thebidder can be the trader, distributer, or supplier in the buyer BPN.Either a buyer or a distributer may initiate the BPN buyer auction. Inthe seller BPN, the bidder can be the buyer, trader, or distributer, andthe supplier initiates the auction.

[0093] If the BPN is a seller auction, then when placing a bid thebidder selects one of the shipment terms specified by the Auctioneer,one of the payment terms specified by the Auctioneer, and a desiredprice for the products offered per unit. The desired price can be theprice as specified by the Auctioneer.

[0094] If the BPN is a buyer auction and the bidder is placing a bid forone product with one origin, when placing the bid the bidder selects thename of the county in which the goods are produced, one of the shipmentterms specified by the Auctioneer, one of the payment terms specified bythe Auctioneer, and a desired price for the products offered per unit.The desired price can be the price as specified by the Auctioneer.Additionally, the bidder may select the name of the manufacturer that isoffering the products, and/or the official product code of the productsoffered.

[0095] If the BPN auction is a buyer auction and the bidder is placingthe same bid for different products with different specifications, thebidder selects the name of the county in which the goods are produced,one of the shipment terms specified by the Auctioneer, one of thepayment terms specified by the Auctioneer, and a desired price for theproducts offered per unit. Additionally, the bidder may select the nameof the manufacturer that is offering the products, and/or the officialproduct code of the products offered. Furthermore, the bidder may selectcountries of origin for each product offered and/or producers for eachproduct offered. The bidder selects the same shipment terms, paymentterms, and desired price for all the products offered. In this way, thebidder may place the same bid for different products with differentspecifications.

[0096] If the BPN auction is a buyer auction and the bidder is placing adifferent bid for different products with different specifications, thebidder selects the name of the county in which the goods are produced,one of the shipment terms specified by the Auctioneer, one of thepayment terms specified by the Auctioneer, and a desired price for theproducts offered per unit. Additionally, the bidder may select the nameof the manufacturer that is offering the products, and/or the officialproduct code of the products offered. Further more, the bidder may, foreach product offered, select countries of origin, producers, shipmentterms, payment terms, desired prices, and product codes. In this way,the bidder may place different bids for different products withdifferent specifications.

[0097] The Bidder is then provided with a summary page (step 10260) ofthe information contained in the bid. The Bidder may review and edit theinformation submitted in previous steps 10270, cancel the bid (step10280), or approve the bid (step 10290). If the bidder reviews and editsthe information submitted (step 10270), the control module then providesthe bidder with an updated summary page that takes into account theedited information (step 10260).

[0098] In order for the bid to be accepted, the system verifies the bid(step 10300) by checking the following conditions:

[0099] (i) the bidders are authorized to participate in an BPN sellerauction (e.g., they are either a trader, distributor or a buyer);

[0100] (ii) the bidders are invited to the auction by the Auctioneer orthey have obtained permission from the Auctioneer to place a bid in theauction;

[0101] (iii) the bidder's participation is not restricted by theAuctioneer; and

[0102] (iv) the bidder has either Administrator user status, knows thecorrect authorization code, or has the Administrator's approval for theauction.

[0103] If any of the above conditions are false, the error is generated(step 10120). Once the bid is approved, it is recorded in the database(step 10310).

[0104] At the end of the initial bidding period (step 10320) (e.g., thetime limit set for the bidding period has expired), the auctioneerselects one of the following:

[0105] (i) proceed to the next step with the bidders selected by thesystem (step 10500);

[0106] (ii) select a plurality of bidders and proceed to the next phase(step 10510);

[0107] (iii) accept one of the bids (step 10520); or

[0108] (iv) abandon the BPN (step 10530).

[0109] Preferably, the maximum number of bidders that can be selected isthree. Also, if the BPN is abandoned, a fine can be imposed on theauctioneer (e.g., U.S. $250). The auctioneer may allow the system toselect the three best bidders (e.g., in order of their best price bidderstatus) or the auctioneer may rank the bidders and nominate any of thebidders to start negotiation phase.

[0110] Next, one of the bidders becomes the select bidder 10540. Thebidder with the best price bidder status or one of the bidders nominatedby the auctioneer becomes the selected bidder.

[0111] The auctioneer then initiates the negotiation with the selectbidder 10550, whereby the auctioneer and select bidder then each makeadditional sequential firm bid/counter bids to negotiate and agree onthe price payment and other contract terms deemed appropriate.Preferably, the auctioneer and each bidder may make two additional firmbid/counter bids. During the additional firm bid/counter bids, theauctioneer and the bidder may agree on the terms at any time during theprocess. Preferably, all other bidders except the selected bidder areheld pending while this negotiation is continuing. The time between eachbid/counter bid may be set to a maximum of 5 minutes. Preferably, eachbidder sets an expiration time for their bids. Preferably, the systemrequires a minimum expiration time of, for example, 30 minutes. Theauctioneer and the bidder may repeat their prices in each bid or counterbid.

[0112] At the end of the negotiation with the first qualified bidder,the auctioneer can choose the bidder and conclude the BPN transaction(step 10560) or choose another bidder as the select bidder (step 10570).

[0113] If the auctioneer chooses another bidder as the select bidder,the bidder can then make his last counter bid valid until the end of theBPN transaction or may set a validity period for the counter-bid up to amaximum time (e.g., 30 minutes). The method then returns to thenegotiation with the select bidder (step 10550).

[0114] If after a specified time has elapsed and the BPN is still notconcluded (step 10555), the parties then proceed to the evaluationperiod (step 10600). Preferably, the evaluation period cannot last morethan 1 hour. When the evaluation period is over, the auctioneer either(i) concludes BPN transaction in favor of any of the bidders (step10610) or (ii) abandons the transaction (step 10620). Preferably, if thetransaction is abandoned, the auctioneer pays a fine (e.g., US$ 500) tothe system. Once the bid is confirmed, the system concludes the auction(step 11000).

[0115]FIG. 7 illustrates the BPN Product Specifications interface 11988.The interface includes a Product Name field 12000, which includes thename of the product to be bought or sold in the auction. Also show is aProduct Grade field 12010, which refers to the grade of the product tobe bought or sold in the auction. The interface also has a ProductQuality field 12020, which defines the quality of the product to bebought or sold in the auction. The member can select from threecategories of quality; prime, near prime, and offspec.

[0116] Also included in the interface is a Product Specifications field12030, which identifies the product specifications. These specificationsmay include the product code of a manufacturer or other specificationssuch as Melt Flow Index or K Value. The member may optionally attach adocument to further clarify the product specifications.

[0117] A Packing Specifications field 12040 identifies the packingspecifications of the product to be sold. There are three packingoptions the member can choose from are: (i) Packed/Bagged, (ii)Packed/Drummed, or (iii) Bulk. It is also possible to make a choicebetween palletized and non-palletized. Preferably, the unit used (kg,liter) is net. Additional packing requirements can be stated in a freefield provided.

[0118] A Quantity field 12050 specifies the amount to be sold in theauction. The member may specify the unit of measure, which can includethe following; mt, kg, lb, gal, ltr, mg, bbl, cyl, m3, ccf, st, mmbtu,dst, ea, bou. If the auction is a buyer BPN auction, the quantity field12050 specifies the quantity requested. However, if the auction is aseller BPN auction, the quantity field 12050 specifies the amount ofgoods for sale.

[0119] An Origin of the goods field 12060 contains the name of thecountry in which the goods are produced. In an BPN buyer auction, threeoptions for this field are available to the auctioneer:

[0120] (i) open to all countries;

[0121] (ii) all countries except the selected ones—in the event thatcertain countries are not desired as the destination, those countriescan be excluded with the help of the arrows from the box where the namesof all countries appear; and

[0122] (iii) only the selected countries—if trade with certain countriesis specifically preferred over the others, then those countries can beincluded with the help of the arrows from the box where the names of allcountries appear.

[0123] The interface includes a Destination of the goods field 12070,which contains the planned country of sale of the goods. In a seller BPNauction, three options for this field are available to the auctioneer:

[0124] (i) open to all countries;

[0125] (ii) all countries except the selected ones—in the event thatcertain countries are not desired as the destination, those countriescan be excluded with the help of the arrows from the box where the namesof all countries appear; and

[0126] (iii) only the selected countries—if trade with certain countriesis specifically preferred over the others, then those countries can beincluded with the help of the arrows from the box where the names of allcountries appear.

[0127]FIG. 8 illustrates a BPN Payment Specifications interface 13000. APreferred Payment Term 13010 includes the preferred way of payment oncethe transaction is concluded. The following options are available;Payment by letter of credit (“L/C”), which may include from sight to 360days; cash against documents; cash against goods; open account; wiretransfer; check; and cash.

[0128] The Auctioneer may specify up to two additional payment terms13011 in addition to the preferred payment term. Bids for differentpayment terms are then separately listed for each term.

[0129] A Preferred Banks field 13020, which is required field if L/C isspecified in the preferred payment terms 13010 field, refers to thebanks with which the Auctioneer prefers to open the L/C. Preferred banksare selected from a “Banks” section and added to a “Selected Banks” withthe help of the arrows. Preferably, selection of multiple banks ispossible by using the “CTRL” key. If the preferred bank is not listed inthe box, the Auctioneer may type the name of the bank in a free field.

[0130] A Preferred banks for negotiation and confirmation field 13030,which is not required, allows the auctioneer to type the name of adesired bank(s) for negotiation and confirmation.

[0131] If the auction is a BPN buyer auction, an earliest date to openL/C field 13035 is present. The field is required if L/C is specifiedand allows the Auctioneer to enter the earliest date that the L/C can beopened.

[0132] Also shown is a Latest Date to open L/C, which is a requiredfield if L/C is specified in the preferred payment terms field 13010.The field includes the latest date that the winning bidder can open theL/C.

[0133] Another required filed is the Auction Currency field 13040. TheAuction Currency field 3040 has the currency to be used in the BPNauction. The auctioneer can select from any of the following; USD, EURO,TL, DM, GBP, FF or JPY.

[0134]FIG. 9 illustrates a Shipment Terms interface 14000. An EarliestShipment Date field 14010 provides for the earliest date for thereadiness of the cargo (product) at the port, area, city or borderstated under “Port/City” and associated with the preferred shipmentterm. A Latest Shipment Date 14020 provides for the Latest date for thereadiness of the cargo (product) at the port, area, city or borderstated under “Port/City” and associated with the preferred shipmentterm.

[0135] The interface also has a Preferred Shipment Term 14030, whichallows the auctioneer to choose from the following incoterms; EXW, FAS,FOB, CFR, CIF or CPT (terms refer to the definitions as provided by ICCstandards). The auctioneer may also set the preferred port, city andcountry.

[0136] The auctioneer may set additional (up to three) shipment terms14011, which enable parties to trade in a more flexible environment. Theauctioneer states the cost difference between each alternative and thepreferred shipment terms. The cost difference is then used by the systemto automatically rank the bids for different shipment terms.

[0137] If the auction is a BPN buyer auction, the auctioneer may selectan independent survey report 14035. In the field, the auctioneer maychoose from the following options:

[0138] (i) No surveyance report is required; or

[0139] (ii) Specific survey report details.

[0140] If the specific survey report details is selected, the auctioneercan then request a packing list survey, quality certificate, inspectionreports, survey report specifications, survey report topics, surveylocations, and/or survey expenses.

[0141]FIG. 10 illustrates the interface for an BPN AuctionSpecifications 15000. A Starting Date 15010 refers to the date on whichthe AWMF auction will commence. A Starting Time 15020 contains the timethat the AWMF auction will be activated on the given starting date. Ifthe starting time field 15020 is left blank, a default value (e.g., 8am) is used. Also shown is a Closing Date 15030, which is required. Theclosing date 15030 refers to the date on which the AWMF auction will beclosed to further bidding.

[0142] A Closing Time field 15040 refers to the time when the ongoingBPN auction will expire on the closing date. If the closing time field15040 is left blank, a default value (e.g., 6 pm) is used.

[0143] A starting date negotiation phase field 16000 refers to the dateon which the Negotiation phase of the buyer BPN commences.

[0144] A starting time negotiation phase field 16010 contains the timethat the negotiation phase of the BPN auction will be activated on thegiven starting date. If the field 16010 is left blank, a default value(e.g., 8 AM is used).

[0145] A closing time negotiation phase field 16012 contains the timethat the negotiation phase of the BPN auction will be activated on thegiven starting date. Preferably, the closing time negotiation phasefield 16012 can not be set to less than one hour after the starting timeof the negotiation phase.

[0146] A Pre-qualification criteria field 16014 defines which threebidders will qualify to the negotiation phase once the bidding phase iscompleted. Two different criteria may be set for the pre-qualificationfield 16014:

[0147] (i) Price only (top three prices will be selected automaticallyby the system); and

[0148] (ii) Auctioneer selects three bidders (after bids phase closeswithin 15 minutes of this closure).

[0149]FIG. 11 shows a flow chart of a rating scheme in accordance withone aspect of the present invention. The rating scheme enables Membersto evaluate other members without knowing the identity of the othermembers and thus, confidently trade.

[0150] If a Member wishes to rate other members, the member sends arating request to the system (step 30000). If the member chooses not torate an other member, the other member is assigned a rating of average(i.e, 3 for the first rate category and 2 for the second and third ratecategories).

[0151] Next, a validation check (step 31000) is performed, in order toensure that the member is allowed to rate the other member. Thefollowing table shows who can rate whom. Buyer Trader DistributorSupplier Buyer Cannot Rate Can Rate Can Rate Can Rate Trader Can RateCannot Rate Can Rate Can Rate Distributor Can Rate Can Rate Can Rate CanRate Supplier Can Rate Can Rate Can Rate Cannot Rate

[0152] For example, the supplier can rate the buyer, trader, anddistributer; however, the supplier cannot rate other suppliers.Additionally, administrator users can use the rating feature on behalfof the company of the administrator. Preferably, members are permittedto revise their rate for any other member only once a day.

[0153] If the member is allowed to rate the other member, the memberenters the rating information through a rating interface 32000, as shownin FIG. 12.

[0154] The member then sends the information to the system (step 33000)(e.g., by clicking a “send information button”), and the system entersthe information into a database (step 34000).

[0155] The information in the database can then be disclosed (step36000) to any member upon a request (step 35000) by the said member.

[0156]FIG. 12 shows an interface for entering the rating information40000. Preferably, one or more members can be evaluated in the interfacefor entering rating information 40000. An evaluation profile for a firstmember 40002 and second member 40004 are shown.

[0157] A Commercial performance and financial condition category 41000allows the member to enter the following ratings:

[0158] “1”—Excellent performance, financial condition, problemresolution;

[0159] “2”—Good performance, financial condition, problem resolution;

[0160] “3”—member has some concerns about performance, financialconditions and problem resolution;

[0161] “4”—Unknown (the member has no knowledge of the member that isbeing rated); and

[0162] “5”—Unacceptable.

[0163] When a member receives an unacceptable rating, the system may,for example, automatically guarantee that the member reviewing therating does not participate in any auctions of the member giving therating.

[0164] A size category 42000 allows the member to enter the followingratings:

[0165] “1”—Large;

[0166] “2”—Medium; and

[0167] “3”—Small.

[0168] A preference over the other members 43000 category allows themember to enter the following:

[0169] “1”—Highly Preferred;

[0170] “2”—Indifferent; and

[0171] “3”—Not Preferred.

[0172] Preferably, in using the interface 40000, members will see a listof all members that they have the authorization to rate, along with anyprevious ratings that the member has given them. In any actions wherethe participants identities are anonymous, the rating of each anonymousparticipant will appear as three digit numbers, for example, “1.2.1.” Inthis example, the “1.2.1” means that the particular member has excellentperformance, financial condition, problem resolution (“1” as the firstdigit); is medium sized (“2” as the second digit); and is highlypreferred (“3” as the third digit).

[0173] Preferably, the member communicates with the system by aclient-server architecture, wherein the member is a client and thesystem is a server. Most preferably, the client-server architectureoperates over the Internet. For example, the member enters fields on aweb page, and then submits the fields to the system.

[0174] The member may communicate with the system by a direct connection(e.g., a direct internet connection such as TELNET). However, the membercould also communicate withe the system by an indirect connection. Forexample, the user could correspond with the system by mail or couldsubmit fields by pressing a send button on a web page.

[0175] In the preceding specification, the invention has been describedwith reference to specific exemplary embodiments thereof. It will,however, be evident that various modifications and changes may be madethereto without departing from the broader spirit and scope of theinvention as set forth in the claims that follow. The specification anddrawings are accordingly to be regarded in an illustrative manner ratherthan a restrictive sense.

What is claimed is:
 1. A computerized method for auctioning products orservices, comprising the steps of: maintaining a set of members, themembers including a plurality of buyers of products and/or services anda plurality of sellers of products and/or services; initiating a sellerauction in response to a request from one of the plurality of sellers,the request including product/service specifications for aproduct/service which the seller wishes to sell, a set of alternativepayment specifications acceptable to the seller, a set of alternativeshipment term specifications acceptable to the seller, and an auctionspecification; in response to the initiation of the seller auction,receiving one or more bids from a corresponding one or more of theplurality of buyers, each bid identifying one of the set of alternativepayment specifications acceptable to the seller, one of the set ofalternative shipment specifications acceptable to the seller, and adesired price for the product/service identified by the product/servicespecifications; for each of the one or more bids, verifying that the bidis from an authorized one of the plurality of buyers based upon theauction specification; receiving, from the seller, either an acceptanceof one of the authorized bids or a rejection of all authorized bids;initiating a buyer auction in response to a request from one of theplurality of buyers, the request including product/servicespecifications for a product/service which the buyer wishes to purchase,a set of alternative payment specifications acceptable to the buyer, aset of alternative shipment term specifications acceptable to the buyer,and an auction specification; in response to the initiation of the buyerauction, receiving one or more bids from a corresponding one or more ofthe plurality of seller, each bid identifying one of the set ofalternative payment specifications acceptable to the buyer, one of theset of alternative shipment specifications acceptable to the buyer, anda desired price for the product/service identified by theproduct/service specifications; for each of the one or more bids,verifying that the bid is from an authorized one of the plurality ofsellers based upon the auction specification; and receiving, from thebuyer, either an acceptance of one of the authorized bids or a rejectionof all authorized bids.
 2. The method of claim 1, wherein the productspecifications include one or more of a product name, a product grade,packing specifications, product specifications, product quality, productquantity, origin of goods, and destination of goods.
 3. The method ofclaim 1, wherein the set of payment specifications include one or moreof a preferred payment term, a set of preferred banks, a preferred setof banks for negotiation, an earliest date to open, a latest date toopen, and an auction currency.
 4. The method of claim 1, wherein the setof alternative shipment specifications include one or more of anearliest shipment date, a latest shipment date, a preferred shipmentterm.
 5. The method of claim 1, wherein the auction specifications for abuyer auction include an identification of sellers authorized to bid. 6.The method of claim 1, wherein the auction specifications for a buyerauction include an identification of buyers authorized to bid.
 7. Acomputerized method for auctioning products or services, comprising thesteps of: initiating an auction in response to a request from anauctioneer; in response to the initiation of the auction, receiving oneor more bids from a corresponding one or more bidders; selecting aplurality of the bidders to form a final bidders set; designating, inturn, each one of bidders of the final bidders set as the select bidderuntil one of an acceptance of a bid from one of the final bidders and arejection of all bids from each of the final bidders occurs; for eachselect bidder, sending one or more bidder bids from the select bidder tothe auctioneer; sending one or more auctioneer bids from the auctioneerto the select bidder; and receiving one of an agreement on a current bidor a termination of bidding from one of the auctioneer and the selectbidder.
 8. The method of claim 7, wherein the auctioneer is a seller ofgoods or services.
 9. The method of claim 7, wherein the auctioneer is abuyer of goods or services.
 10. The method of claim 7, wherein therequest includes product/service specifications for a product/servicewhich the auctioneer wishes to sell or buy, a set of alternative paymentspecifications acceptable to the auctioneer, a set of alternativeshipment term specifications acceptable to the auctioneer; and whereineach bid identifies one of the set of alternative payment specificationsacceptable to the auctioneer, one of the set of alternative shipmentspecifications acceptable to the auctioneer, and a desired price for theproduct/service identified by the product/service specifications. 11.The method of claim 10, wherein the request from the auctioneer includesan auction specification, and wherein the method further comprises thestep of for each of the one or more bids, verifying that the bid is froman authorized bidder based upon the auction specification.
 12. Acomputerized method for providing information to initiators andparticipants in computerized auctions of products or services,comprising the steps of: maintaining a set of members, the membersincluding buyer members and seller members, the buyer members having theability to initiate buyer auctions and to participate in sellerauctions, the seller members having the ability to initiate sellerauctions and to participate in buyer auctions; accepting, from a buyermember, a performance rating for any one of the seller members;accepting, from a seller member, a performance rating for any one of thebuyer members; providing the performance ratings to the set of members.13. The method of claim 1, wherein the alternative paymentspecifications includes two or more of a payment by letter of creditterm, cash against documents term, cash against goods term, open accountterm, wire transfer term, check term, a cash term, and an auctioncurrency term.
 14. The method of claim 1, wherein the product/servicespecifications includes two or more of a packed/bagged term,packed/drummed term, bulk term, palletized term, non-palletized term,and user defined packing term.
 15. The method of claim 1, wherein thealternative shipment specifications includes one or more of an earliestshipment date term, a latest shipment date term, and a preferredshipment term.
 16. The method of claim 15, wherein the alternativeshipment specifications includes one or more alternative shipment termsand further includes a cost difference between each of the alternativeshipment terms and the preferred shipment term.
 17. The method of claim16, further including the step of ranking the bids based on the costdifference.
 18. The method of claim 1, wherein the product/servicespecifications includes two or more of an open to all countries term,all countries except a selected one term, and only the selectedcountries term.
 19. The method of claim 1, wherein the alternateshipment specifications includes either a no survayence report isrequired term or a specific survey report details term.
 20. The methodof claim 19, wherein the specific survey report details term includesone or more of a packing list survey term, quality certificate term,inspection reports term, survey report specifications term, surveyreports topic term, survey locations term, and survey expenses term.